US blue-chip stocks slipped on Friday, weighed down by consumer-staples companies such as Coca-Cola as investors grew more concerned about consumer spending. However, the Standard & Poor's 500 index eked out a small gain, led by financial stocks including JP Morgan Chase and Bank of America, as an agreement on a financial-regulation overhaul removed some of the uncertainty that had been weighing on the sector.
The Dow Jones Industrial Average slipped 8.99 points (0.09%) to 10,143.81, its lowest close since June 9. The measure fell 2.94% last week, snapping a two-week winning streak and marking the Dow's biggest weekly drop since the week ended May 21. The measure is still up 0.07% for the month.
The Dow's drop was led by its consumer components. Investors' concerns over consumer companies rose after the government cut its estimate for first-quarter economic growth, citing weaker consumer spending. Coca-Cola fell $1.54 (3%) to $50.26, while Wal-Mart Stores dropped $1.23 (2.5%) to $48.80.
The financial sector limited the Dow's drop, jumping after congressional Democrats and White House officials, following more than 20 hours of wrangling, reached agreement on the final shape of legislation that would transform financial regulation.
After months of uncertainty about how the US would draft new rules, the agreement offers the clearest picture since the financial crisis of how markets and the government will interact for decades to come. The common thread: Large financial companies are facing a tougher leash. The bill is expected to have enough support to become law.
Among the Dow's financial components, American Express climbed $1.61 (3.9%) to $42.67, while JP Morgan rose $1.41 (3.7%) to $39.44, and Bank of America added 40 cents (2.7%) to $15.42.
The gains in the financial sector helped lift the S&P 500, which closed up 3.07 (0.29%) to 1,076.76, halting a four-day losing streak. The measure lost 3.65% last week.
The Nasdaq Composite rose 6.06 (0.27%) to 2,223.48, its first gain in five sessions. The measure fell 3.74% last week.
BP's American depositary shares hit a fresh 14-year low, despite the company taking steps to boost its liquidity, as concerns grew that the oil giant might have to consider selling shares to bolster confidence in its financial stability. The US shares dropped $1.72 (6%) to $27.02.
Oracle rose 44 cents (2%) to $22.66. The business-software giant's fiscal fourth-quarter profit climbed 25% as it benefited from new revenue from its Sun Microsystems acquisition, as well as strong demand for software licenses.
Research In Motion tumbled $6.35 (11%) to $52.23. The maker of the Blackberry smartphone shipped a record 11.2m devices in the fiscal first quarter and reported per-share earnings above analysts' estimates, but its revenue fell short of expectations.
Accenture climbed $3.00 (8%) to $40.55. The consulting and outsourcing company's fiscal third-quarter profit rose 11% on strong growth in its products and financial services segments.
Celgene edged up $1.28 (2.3%) to $56.07, after the company said Japan's health ministry approved its Revlimid treatment for plasma-cell cancer patients who have received at least one prior therapy.
For Australian ADRs listed on the NYSE, BHP Billiton climbed 1 cent (0.01%) to US$67.99, Rio Tinto Plc shed 21 cents (0.43%) to US$48.78, ResMed firmed 30 cents (0.49%) to US$61.69, Telstra Corporation strengthened 15 cents (1.05%) to US$14.48, Telecom Corporation of NZ remained unchanged at US$6.94 and Westpac gained 45 cents (0.48%) to US$94.72.
In economic news, The Commerce Department reduced its estimate for 1Q economic growth for the second time, now at 2.7%, due to lower consumer spending, underscoring caution about the recovery's strength. Economists expected no revision from the 3.0% figure of a month ago.
At 7:45 AM (AEST), the 10-year Treasury note yield was 3.11% and the five year yield was 1.90%.
European stocks declined on Friday, as losses for BP and autos worked to offset gains for banks as US lawmakers agreed on a financial reform bill.
The Stoxx Europe 600 index declined 0.6% to 248.29, bringing weekly losses to 2.8% - the first weekly drop in five weeks.
The UK budget introduced a bank levy, and early on Friday, negotiators for the House and Senate agreed a package of regulatory reforms.
In keeping interest rates unchanged, the Federal Reserve downgraded its assessment of the US economy, in part citing European debt worries.
Ahead of the G-20 summit, the banking sector took back some recent losses, with Credit Agricole advancing 2.6% in Paris and Standard Chartered gaining 1.9% in London. Standard Chartered on Monday is due to deliver an update on its performance.
A news source reported that the Basel Committee of banking regulators will pare back some of its planned rules to force banks to set aside billions of dollars of extra capital. The Bank of England meanwhile called for slower changes to capital rules.
Of the major regional equity markets, the UK FTSE 100 index declined 1.1% to 5,046.47, the German DAX index lost 0.7% to 6,070.60 and the French CAC-40 index fell 1% to 3,519.73.
Weighing in Europe, oil giant BP shares fell 6.4% to 305 pence, bringing market capitalisation losses since April 20, when the Deepwater Horizon rig exploded, to over $100bn.
Carmakers were also weak on Friday, with Daimler shares down 3.3% and Volkswagen shares down 2.8% after both firms were downgraded to neutral from buy.
On the FTSE 100, Rio Tinto lost 93.00 pence (2.83%) to 3,189.00 pence and BHP Billiton dipped 53.00 pence (2.76%) to 1,867.00 pence.
Asian stock markets closed mostly lower as concerns over the global economic outlook persisted in the wake of overnight losses on Wall Street and lingering worries over European sovereign debt.
Japan's Nikkei Stock Average lost 1.9%, China's Shanghai Composite Index lost 0.5% and the Hang Seng Index slid 0.2% in Hong Kong.
New Zealand shares ended lower, weighed down by a lack of positive local leads and weaker offshore equity markets. The benchmark NZX-50 Index slipped 0.5%, or 15.36 points, to 3,034.11, and was down 0.4% for the week.
Base metals on the London Metal Exchange recovered in a short-covering rally ahead of the weekend, and analysts predict the market will be looking at sentiment following the G-20 summit in Toronto for direction early this week. Aluminium rose $35 (1.78%) to $2,005 while copper firmed $170 (2.54%) to $6,860 and nickel added $385 (1.96%) to $19,985. Zinc fell $5 (0.27%) to $1,875 and lead strengthened $5 (0.27%) to $1,845.
Comex copper was last quoted at 309.55 US cents per pound.
Gold futures gained as investors moved into the metal as a safe-haven after the US first-quarter gross domestic product figures were revised lower.
Spot gold was last quoted at $1,254.30. Comex gold futures improved $10.30 (0.83%) to $1,256.20. Spot silver was last quoted at $19.04.
Crude-oil hit seven-week highs on worries that a developing storm system in the Gulf of Mexico could disrupt oil production just as gasoline demand is gaining traction. West Texas Intermediate was last quoted at US$78.61 per barrel.
At 07:45 a.m. (AET) the US dollar was quoted at 0.8083 euros, 89.31 yen, 1.143 AUD and 66.44 pence.